During 1994 Japan continued to experience turmoil in domestic politics as Tomiichi Murayama (see BIOGRAPHIES) became the third prime minister selected in one year. With electoral reform finally on the way to passage, it was doubtful that the three-party coalition led by Murayama’s Social Democratic Party of Japan (SDPJ) could retain control of the government. Along with this uncertainty was a disturbing estimate that Japan’s growth for 1994 would be 0.8%, the lowest rate among the Group of Seven advanced industrial democracies (G-7). Despite the ailing economy at home, Japan remained alone among the G-7 to display a towering current account surplus ($130 billion). In June the Finance Ministry reported that in 1993 Japan was the world’s top creditor for the third straight year, net overseas assets having risen to a record $610.8 billion. The ever growing trade surplus was increasingly generating pressure on Tokyo, especially from the U.S.

Internal Affairs

In 1992 Morihiro Hosokawa had launched the Japan New Party (JNP), and in 1993 he headed a seven-party coalition dedicated to reform and corruption-free politics. In August 1993 he was elected prime minister. Early in 1994 his coalition, with the support of the president of the Liberal-Democratic Party (LDP), revived and amended electoral reform bills. The package, which cleared both houses of the Diet (parliament) on January 29, would take effect in the autumn after a council had drawn new electoral districts.

The Public Office Election Law (with a parallel political funds control regulation) represented the biggest change in the electoral system since woman suffrage was enacted in 1945. Reduction in the number of seats in the (lower) House of Representatives to 500 was expected to free candidates from "money politics." Single-seat constituencies were increased to 300, and proportional representation in 11 regional blocs was to produce 200. Adoption of the laws proved to be the only major accomplishment of the Hosokawa regime. On April 8, eight months after he assumed office on a reform platform, Hosokawa announced his resignation to solve the Diet deadlock over charges that he had improperly profited from ties to a trucking company in the early 1980s.

Only hours after Tsutomu Hata, cofounder with Ichiro Ozawa of Shinseito (Japan Renewal Party) in 1993, was elected prime minister on April 25, the SDPJ withdrew from the new coalition. Angered by the formation of a parliamentary group that excluded the socialists, Murayama promised to cooperate in passing the long-stalled budget. On April 28 Hata formed the first administration in 39 years to lack majority support in both houses of the Diet. His coalition occupied only 14 of 20 posts in the new Cabinet. Aware of his low approval rating and facing a no-confidence motion, Hata consulted Ozawa and then decided on June 25 to step down. Before relinquishing power, the Hata Cabinet announced a program for promoting deregulation. Some 280 measures covered four main areas: reduction of land and housing costs; technological progress in communications; market access to increase imports and enhance consumer benefits; and support of innovations in finance, securities, and insurance. The package was designed to help reduce Japan’s trade surplus and to relieve foreign pressure on Tokyo.

On June 29 Tomiichi Murayama became the first Socialist in 47 years to be elected prime minister. His SDPJ, the second largest party in the lower house, formed an astonishing alliance with its traditional rival, the LDP, and with New Party Sakigake. Murayama’s Cabinet included 13 ministers from the LDP, the largest party in the lower house, and 5 from the SDPJ.

In his inaugural speech on July 18, Murayama pledged tax reform. He also promised that the next general election would be held under the new polling system. Until then the distribution of lower house seats (total 512) would be: LDP 200; the former coalition consisting of JNP, Shinseito, and the Democratic Socialist Party (DSP) 126; SDPJ 74; Komeito (Clean Government Party) 52; Sakigake 21; Japan Communist Party (JCP) 15; and independents and vacancies 24. In the upper house (total 252) the apportionment was: LDP 95, SDPJ 68, Komeito 24, JCP 11, and independents 54.

On August 11 a panel delivered to Murayama a new election map, which could produce further realignment of parties. The winner-take-all feature in the 300 single-seat constituencies favoured large parties and could enhance the role of LDP candidates, who had won the most seats in many districts. Moreover, on August 18 nine opposition groups, ousted by Murayama’s three-party alliance, agreed on principles to establish a new party. Included were Shinseito, the JNP, Komeito, five smaller groups, and LDP dissidents. Hata predicted that 190-200 lower house members would join the New Frontier Party (Shinshinto), which was officially inaugurated in December.

Monju, Japan’s first prototype fast-breeder reactor, located in Tsuruga, Fukui prefecture, achieved criticality on April 5. The facility was expected to supply commercial energy in 1995. Since such a reactor produced plutonium, which could be used for nuclear weapons, there were strong domestic and international protests. To offset criticism, Japan proposed an international agency to control disposition of the plutonium.

On August 29 a ceremony opening the new Kansai International Airport was held on a man-made island in Osaka Bay. The project, which took nearly eight years to build, cost about $14.4 billion. The 105-ha (260-ac) facility would eventually handle 390 round-trip international flights per week.

On October 4 a major earthquake with a magnitude of 7.9 shook Japan. The quake was centred on the ocean floor east of Hokkaido, where damage was reported, and south of the Kurils, where 16 people were reported killed. Another quake of similar magnitude (about 7.5) occurred off the northeast coast of Honshu on December 28, but damage was minimal.

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